Top 10 cities: Where to buy now; #1 Panama City, FL

[SHELLY]

SHELLY, did you check out the figures for San Luis Obispo?

Exactly. San Luis is "in a ditch" housing affordability-wise as well....which makes this article all the more fatuous.

 

[SHELLY]

Re: Panama City named on cnnfn.com as #1 place to buy real estate now

Using the estimated median prices for homes, assuming a 30 yr mortgage with 6% interes and a down payment of 20%, the return on investment after paying principle and interest, comes to ~209% over the five year period, which averages out to be ~42% per year. ;-) Of course, I included the principle and interest for the conservatives out there, but in my scenerio, your only housing costs would be taxes and insurance (which may be another thread altogether). If we didn't include the P&I, the return on investment (down payment) would total 348% over the five years, or ~70% per year. ;-)

What's this "Down Payment" of which you speak??

 

[Smiling JOe]

Re: Panama City named on cnnfn.com as #1 place to buy real estate now

What's this "Down Payment" of which you speak??

the typical 20% down payment which one makes when buying a home. If you use less of a down payment, the rate of return on your cash investment is even greater, but you already know that.

 

[Bobby J]

I personally feel that coastal areas are going to be where the wealthy have homes. The workes will live inland (Defuniak, Crestview, Lynn Haven, etc). The beaches will be too expensive... With insurance and taxes it is just a matter of time. I am also sure that there are alot of rich people that will like it like that.

 

[dbuck]

I personally feel that coastal areas are going to be where the wealthy have homes. The workes will live inland (Defuniak, Crestview, Lynn Haven, etc). The beaches will be too expensive... With insurance and taxes it is just a matter of time. I am also sure that there are alot of rich people that will like it like that.[/quote]

 

[Pirate]

Re: Panama City named on cnnfn.com as #1 place to buy real estate now

the typical 20% down payment which one makes when buying a home. If you use less of a down payment, the rate of return on your cash investment is even greater, but you already know that.

The smaller the down payment on a piece of property the higher the risk of substantial (total) loss, as many flippers are discovering. The return is on the entire purchase amount and the risk of losing the entire figure does exist however small. Leverage works both ways but it feels stroger when it works against you. As I have stated before buying investment property with a mortgage is the same as buying stocks on margin.

Of course evryone who buys in SoWal is just going to live there some day and doesn't care if the prices go up or it rents, or so I've heard.:roll:

 

[SHELLY]

Re: Panama City named on cnnfn.com as #1 place to buy real estate now

the typical 20% down payment which one makes when buying a home. If you use less of a down payment, the rate of return on your cash investment is even greater, but you already know that.

I thought the "20% Down Payment" went by the way of the Wooly Mammoth and the Dodo Bird. :shock:

 

[SHELLY]

I personally feel that coastal areas are going to be where the wealthy have homes. I am also sure that there are alot of rich people that will like it like that.

Up to the moment when they need their pool cleaned, their nails done, or a 911 response.

 

[Bobby J]

Up to the moment when they need their pool cleaned, their nails done, or a 911 response.

These folks will commute in just like other affluent areas. 911 response groups typically do 48-72 hour shifts on site. I am not saying I am excited about what is going down but it definitely is not uncommon.

 

[Bobby J]

Shelly,

Have you ever seen that skit on Saturday night live? It is called "Debbie Downer". Check it out. I am just kidding! I have really learned alot from you. You should still see that skit. It is pretty funny.